- US Launch of CollaGUARD(TM), an advanced wound care product developed by

Innocoll and its first to be launched in the US, is planned for the

fourth quarter 2007.

- European sales and marketing infrastructure sold to EUSA Pharma in

August 2007.

Commenting on the update, Dr. Michael Myers, President and CEO of
Innocoll Inc., said, "Our successes over the past few months have
established a solid platform on which to build the future growth of the
business. We are looking forward to the launch of our first product in the
US with CollaGUARD and are poised to commence the clinical development of
an exciting portfolio of late- stage pharmaceutical products. According to
recent market research performed by L.E.K. Consulting, these three products
between them have projected annual sales of approximately $800 million in
the US alone."

About Gentamicin Surgical Implant

GENTAMICIN SURGICAL IMPLANT is a fully biodegradable, leave-behind
surgical implant impregnated with the broad spectrum aminoglycoside
antibiotic, gentamicin. It was developed using Innocoll's proprietary
collagen-based technology, CollaRx(R), and is designed to provide a high
concentration of gentamicin (which has a concentration-dependent mechanism
of action) at the target tissue while maintaining low systemic levels well
below the toxicity threshold. The product is indicated as an adjunct to
systemic antibiotic therapy for the prevention of surgical site infections
and for the treatment of deep, localized infections in both hard and soft
tissues. There are more than 60 prospective clinical trials and published
case reports totalling over 7,500 patients documenting safety and efficacy
over a broad range of orthopaedic, colorectal, cardiothoracic, vascular,
and neurosurgical procedures. The product is already approved in 49
countries spanning Europe, Latin America, Middle East, Africa and Asia and
is marketed by EUSA Pharma under the following trade names; COLLATAMP(R) G,
COLLATAMP(R) EG, SULMYCIN(R) IMPLANT, GARAMYCIN(R) SCHWAMM, DURACOL(R),
DURACOLL(R), GENTACOL(R), GENTACOLL(R), GARACOL(R), GARACOLL(R) and
CRONOCOL(R).

GENTAMICIN SURGICAL IMPLANT is under development in the US for the
prevention of surgical site infections. An IND has been approved by the FDA
and Innocoll plans to conduct two US multi-centered phase 3 clinical
trials; one in cardiac surgery patients at higher risk of surgical site
infection and the other in patients undergoing open colorectal surgery.
Innocoll has appointed Duke University's Duke Clinical Research Institute
(DCRI) as the Study Co-ordinating Center for both trials. Independent
market research recently performed by L.E.K. Consulting projected peak US
sales of greater than US$200 million per annum.

About CollaRx(R) Gentamicin Topical

CollaRx GENTAMICIN TOPICAL is a biodegradable collagen-based dressing
that delivers the broad-spectrum antibiotic, gentamicin, directly to the
infected wound environment for localized action. The product is already
approved and marketed in countries outside the US as GENTAMICIN SURGICAL
IMPLANT where a number of published clinical case studies and anecdotal
reports from clinicians have pointed to its effectiveness in the treatment
of infected chronic wounds of various etiologies. Innocoll plans to develop
the topical indication for the global market. Initially the product will be
investigated for the treatment of diabetic foot infections across the full
range of severities in a series of phase 2 trials and has appointed the
full-service Clinical Research Organization, Premier Research Group, to
co-ordinate these studies. The lead indication is the treatment of diabetic
ulcers having a mild infection where the safety and efficacy of CollaRx
GENTAMICIN TOPICAL will be compared to an orally administered antibiotic.
In subsequent phase 2 trials, Innocoll will investigate the product as an
adjunct to systemic antibiotic therapy for treating diabetic foot
infections of higher severity and also as a method to prevent diabetic
ulcers from becoming clinically infected.

Currently, there are no topically applied antibiotics marketed in the
US that are specifically indicated for the treatment of infected diabetic
foot ulcers and recent market research independently performed by L.E.K.
Consulting forecast peak annual revenues for CollaRx GENTAMICIN TOPICAL
approaching US$270 million, when limiting the sales projections to diabetic
foot indications only.

About Bupivacaine Surgical Implant

BUPIVACAINE SURGICAL IMPLANT is a biodegradable and fully bioresorbable
matrix of purified fibrillar collagen impregnated with the local
anesthetic, bupivacaine. It has been specifically developed and formulated
using Innocoll's proprietary CollaRx sponge technology and is under
international development for the management of post-operative pain
following moderate/major abdominal, gynecological, thoracic, and orthopedic
surgeries. Post-operative pain is typically controlled with narcotic
analgesics such as morphine, but systemic administration of these drugs can
result in unfavorable side effects including suppression of breathing,
sedation, nausea and vomiting; and can also affect patient recovery.
Innocoll's BUPIVACAINE SURGICAL IMPLANT is intended to provide pain control
directly at the surgical site and thus reduce the level of additional
analgesia required following surgery. The collagen matrix naturally
biodegrades over a few days and the bupivacaine is released to provide
local analgesia for up to 96 hours post-operatively. A key feature of
Innocoll's product is the ability to implant it directly into the surgical
cavity and at different layers within the wound, such as across the
peritoneum incision and directly below the skin incision, which enables
localized treatment of both the incisional and deep, visceral pain
components in tandem.

The results of an initial clinical study performed at Wexham Park
Hospital, Slough, UK, in patients undergoing hysterectomy surgery were
particularly encouraging, showing evidence of sustained, post-operative
analgesia for approximately 96 hours. Innocoll filed an IND in March 2007
and intends to conduct a series of phase 2, multi-centered, controlled
clinical trials in a variety of soft tissue and orthopedic surgical models;
including hysterectomy, herniorrhaphy, open gastrointestinal surgery and
anterior cruciate ligament (ACL) repair. BUPIVACAINE SURGICAL IMPLANT is
believed to offer broad utility across a variety of surgical disciplines,
as reflected in independent market research recently performed by L.E.K.
Consulting which expects the product to achieve peak US sales nearing
US$310 million.

About CollaRx(R) Bupivacaine Topical

CollaRx BUPIVACAINE TOPICAL is the clinical development of BUPIVACAINE
SURGICAL IMPLANT when applied topically for the management of painful
chronic and acute wounds, including ulcers of various etiologies and burns.
Patients with such wounds can suffer severe pain, especially when the
dressing is changed. It is anticipated that CollaRx BUPIVACAINE TOPICAL
will provide long- acting analgesia between dressing changes and
significantly reduce pain at the time of dressing change. In addition to
the analgesia provided by the bupivacaine, the fibrillar collagen matrix is
also expected to provide supplementary wound healing benefits, ultimately
leading to accelerated wound closure.

About CollaGUARD(TM)

CollaGUARD is comprised almost entirely of purified type-I collagen
protein and is clinically indicated in the US for the management of
pressure ulcers, venous stasis ulcers, diabetic ulcers, first and second
degree burns, partial and full thickness wounds, and superficial injuries.
Unlike alginates, hydrogels and hydrocolloids used in other categories of
advanced wound care products, collagen is a fully biodegradable and
bioactive material with a pharmacological action that stimulates the
natural wound healing process. In addition, CollaGUARD provides the barrier
protection and transparency of film dressings, which allows the clinician
to visually inspect and monitor the wound without removal.

About Innocoll, Inc.

Innocoll is a privately held, specialty pharmaceutical company focused
on surgical and topical products. It develops and manufactures a range of
pharmaceutical products and medical devices using its proprietary collagen-
based technologies, CollaRx(R) and Liquicoll(R). Innocoll 's lead product,
Gentamicin Surgical Implant for the treatment and prevention of surgical
site infections, is approved for sale in 49 countries and is entering phase
3 development in the US. In 2005, Innocoll acquired the worldwide marketing
rights for this product from Essex Chemis AG, an affiliated company of
Schering-Plough Corporation (NYSE: SGP) and in August 2007 sold its
marketing rights, with the exception of the US, to EUSA Pharma. Other late
stage pharmaceutical products in Innocoll's development pipeline include
CollaRx Gentamicin Topical for the treatment and prevention of infected
diabetic foot ulcers and Bupivacaine Implant for the management of
post-operative pain, both of which are currently in Phase 2 development.
For more information, please visit http://www.innocoll.com.

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